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FUNDING EVENTS FOR THE WEEK OF AUGUST 8th - AUGUST 14th

This past week Capital Hunter identified a total of 59 funding events globally that merit attention. Of the 59 companies globally that we identified, 39 of the funding events were by U.S. companies. 26 U.S. based companies are privately held and 13 are publicly traded companies; moreover, 26 of them raised equity capital and 13 secured debt financing. A few financings are highlighted below:

CancerVax Corporation is a later stage privately held company located in San Diego, CA and Develops immunotherapeutic biological products for the treatment, prevention and control of cancer. CEO, David Hale, was able to secure $41 million in a follow on series C financing from its existing venture and institutional investors.

Bristol-Myers Squibb Co. is a NYSE (Ticker: BMY) company located in New York, NY and is one of the worlds largest drug manufacturer. Bristol-Myers Squibb Co. has sold $1 billion in two-part global debt in the 144a private placement market. Goldman Sachs, J.P. Morgan and Banc of America Securities LLC were the joint book-running managers.

Reactivity, Inc. is a later stage privately held company located in Belmont, CA and provides support for the deployment, operation, and reaction requirements of Web services and XML solutions. CEO, Glenn Osaka, was able to secure $10.3 million in a series C round of financing from venture investors: JK&B Capital, Accel Partners, Austin Ventures, and Diamondhead Ventures.

Xtera Communications, Inc. is a later stage privately held company located in Allen, TX and is provider of a dense wavelength division multiplexing (DWDM) optical networking transport system for regional, long-haul, and ultra-long-haul networks. CEO, Jon Bayless, was able to secure the company's sixth round of financing from venture investors. The company is backed by Sevin Rosen, ARCH Ventures, Berkley International, CenterPoint Venture Fund, Communications Ventures, EDF Ventures, Hook Partners, New Enterprise Associates, Rho Ventures, and Star Ventures Management.

HIGHLIGHTS

Total debt and equity financings in the United States decreased this reporting period by 15% to $3.104 billion, compared to last week's $3.635 billion. Below you will find a break down of this week's financings in the United States, Canada, and internationally:

EQUITY INVESTMENTS

Total equity capital raised by U.S. companies this week was $278 million. Below you will find how the equity investments were distributed by Geography, Industry and Stage of Development for the week:

GEOGRAPHY

California companies raised 56% of the total $278 million in equity raised in the United States this past week. One of the larger equity deals in California this reporting period was Renovis, Inc. a San Francisco based privately held company. Renovis, Inc. is a neurobiopharmaceutical company that identifies and develops therapies for neurological and psychiatric diseases and has raised $45 million in a series D round of financing from prominent investors: HealthCap, Flagship Ventures, Alta Partners, Easton Hunt Capital Partners, MDS Capital Corp., Invus Group, CDIB BioScience Ventures Inc, Venrock Associates, Skyline Ventures, and HBM BioVentures, Ltd.

Note: States that received equity funding less than $10 million was included with the OTHER category.

INDUSTRY

Biotech companies received 38% of the total $278 million in equity raised in the United States this period. The two largest deals in the biotech space this past week were CancerVax Corporation and Renovis, Inc.

Note: Industries that received equity funding of $15 million or less were included with the OTHER category.

STAGE OF DEVELOPMENT

Later stage privately held companies raised 70% of the equity this period. The public equity markets were off this week. Maybe the BLACKOUT on Wall Street had something to do with it?

VENTURE CAPITAL

Venture capitalists in the United States invested 27% fewer dollars this past week compared to the week before and funded 19 Companies for a total of $238 million. The average venture capital deal size this week was approximately $12.53 million. Below you will find the Year to Date Venture Capital investment activity in the United States:

QUARTERLY OVERVIEW

A total of 652 deals for a total of $28.918 billion in debt and equity investments were made in Q2 2003 in the U.S. and Canada which is a decrease of 30% compared to the 807 deals funded in Q1 2003. Venture capital financings totaled $3.406 billion in Q2 2003 which is an increase of 6% over total venture financings in Q1 2003. If you would like to receive a detailed quarterly analysis of any of the following regions feel free to contact us for your complimentary overview: San Francisco, San Jose, Palo Alto, San Diego, New York City, Chicago, Boston, Austin, Seattle, Los Angeles, and Washington DC.